India’s retail market set to reach US$ 237.6 billion by 2035, driven by AI and consumption surge: Report
- IBEF
- February 17, 2026
As stated in a report sourced from the Economic Times, the Indian retail market is expected to reach approximately Rs. 21.5 lakh crore (US$ 237.6 billion) by 2035 with robust growth driven by increasing levels of consumption and the growing application of AI throughout the supply chain. Evolving consumer behaviours, rising income levels, and rapidly increasing digital use have changed how retail functions within the economy. AI-enabled technology is likely to deliver improved inventory management and efficiencies throughout supply chains and create customised shopping experiences to help retailers better manage their operations and engage more effectively with their customers. The rise of digital payments, omnichannel strategies, and data-driven decision-making in organised retail will continue to fuel this transformation.
As stated in the report released today, AI will become essential for forecasting demand, saving operational costs, and enhancing productivity for the supporting of scalable and sustainable growth for retailers throughout the entire supply chain. With retailers increasingly using analytics and automation to improve logistics and the last-mile delivery experience, this can be further supported with urbanization and the growth of e-commerce platforms, as well as increased penetration into Tier II and Tier III cities. Many industry experts believe that technological advancements combined with strong consumer trends will help solidify India as one of the fastest-growing retail markets in the world. These trends will drive future retail growth as India continues to shift to a digitally driven, innovation-led retail ecosystem as part of its longer-term growth plans.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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